The Production of Sturgeons - Essay Example

The demand for the sturgeons' meat and caviar is influenced by factors such as perception of the market, or its symbol for status; sturgeons have the highest amount of omega 3s, essential fat, or good cholesterol; and its taste adapts to many flavors (Cites.org, 2009). These, among others, influence the demand both for meat and caviar. The high demand for sturgeons' meat and caviar, as consumers are seen to be willing to pay high amounts for it, provides high margins in terms of profitability to producers.

Thus, this incentive enables producers to venture into the aquaculture industry, and provide sturgeons.The how question, as regards the production of sturgeons, is dependent on the technology on aquaculture farms in the Midwest. Although the production of sturgeons provides high profitability in terms of margins, this cannot be realized unless the level of technology can cut down the costs to enable the farms to expand. Therefore, with the advancement of biotechnology and aquaculture, the cost of raising fish goes down in order to provide a higher margin, which could be allocated for other operational expenses of the producers (Cites.org, 2009).

The question of 'for whom' is determined partly by the dynamics of the supply and demand in the caviar and meat market for sturgeons. As demand is high and supply is low, the price for caviar is high that only a few end customers could afford it—most usually through high-end restaurants and hotels in the country (WSCS.info 2009). Only those who could afford to pay the price of caviars in these fancy restaurants can get either the meat or the caviar. Consumers who are willing to pay the price can also buy it from distribution outlets—the dynamics of the market which influence the price of the caviar and the meat of sturgeons determines for whom these goods are produced.

These high prices for caviar and the meat of sturgeons also produce a virtuous cycle for the demand, where the high prices create a perception of luxury, therefore those who are able to afford it would also be most willing to buy it. And the high demand because of being a luxury food continues to influence the price in return.